Coronavirus fears spook stocks: Here's how to keep a cool head and protect your 401(k)

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U.S. stocks lost $1.7 trillion in market value over the past two days on mounting concerns the deadly coronavirus outbreak will further damage an already slowing global economy.

Pay attention to where you’re invested and which companies are most likely to be affected, portfolio managers say.

“When dealing with a virus like this, it’s important for investors to review and recalibrate their long-term goals,” Milan says. “If fear is driving you to make emotional decisions in the stock market, then that’s a sign that you weren't allocated appropriately for the long term,” he says, referring to how investors chose to split their portfolio between stocks, bonds and other assets.One thing to consider is how much direct exposure you have to emerging-market stocks in Asia.

Spending by consumers accounts for nearly half of China’s economic activity. If they opt to stay home instead of shopping or traveling, that would depress tourism and threaten earnings growth for consumer-oriented companies in Asia.U.S.-based multinational companies with large exposure to China's economy are grappling with production delays from the virus, including industries such as manufacturing, automotive, airlines and technology.

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